Benefits & Executive Compensation News

California Farming Company Sued Over Timely Health Care Notices

June 26, 2020, 9:51 PM

California Vegetable Specialties Inc. failed to provide terminated employees with timely notice of their right to continued health care, causing economic injuries and barriers, according to a class suit filed in California federal court Friday.

Coral Rechner worked for Vegetable Specialties and received health care coverage under the company’s group health benefit plan, she told the court. When she was terminated in 2019, the company failed to send her notice of her right to stay on the plan within 44 days, therefore violating the Consolidated Omnibus Budget Reconciliation Act, Rechner alleged.

Under COBRA, companies with 20 or more employees must...

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